Jobs said Apple is still working on the version of the Wi-Fi iTunes Music Store that will work with the iPhone, which hasn't launched yet but will soon be made available via an iPhone software update. In the US, customers will be able to browse the store from an iPhone or iPod touch via a free Wi-Fi connection at certain Starbucks locations, but the same will not be true for UK customers. Why? Jobs had no concrete answer and instead suggested that reporters "ask Starbucks" about the matter, implying that Apple may have sought a similar Wi-Fi sharing deal with the coffee house overseas but has yet to reach an agreement.

The Apple boss was seemingly more willing to discuss the company's stance on iPhone unlocks and third-party application development. "This is constant cat-and-mouse game," he said of the ongoing attempts to untether the handset from its intended carriers. "[P]eople are going to try and break in and it's our job to try and stop them."

Meanwhile, Jobs acknowledged that third-party developers have started to produce several intriguing, yet unofficial iPhone applications. He said Apple is looking at some of them closely, especially those that don't require a connection to the Internet. It's likely that those applications would be the first of any to receive an official endorsement from Apple, according to Jobs' comments, as those that require Internet access could threaten the 'high standard' of experience customers have come to expect with the iPhone.

Jobs also left the door open for a 3G version of the iPhone somewhere down the line, but maintained that current 3G chipsets are "power hogs." He said most of today's 3G devices have battery lives that span only 2 to 3 hours, compared to the iPhone's average 8 hours. "We've got to see the battery lives for 3G get back up into the 5+ hour range," he said. "Hopefully we'll see that late next year."

While Apple's iPhone announcement on Tuesday covered only the UK, Jobs confirmed plans to announce carrier deals in "a few" other European countries during the fourth calendar quarter of the year. Building exclusive partnerships is a timely, consuming process, he explained, and Apple met with the broader array of European carriers before deciding which avenue was best from a customer experience perspective.

"Partnerships take a lot of work — you want to go out on a few dates before you get married," said Jobs. "Yes, we dated a few people but didn't get married, and so there were a few unhappy girlfriends out there."

The Apple chief, however, would not get into detail about why O2 fit Apple's liking for the UK but not for other European countries. Similarly, he refused to comment on Apple's revenue share agreements with O2, but hinted that such agreements may actually go both ways. When asked whether Apple would share Wi-Fi iTunes Store revenues with carriers in the same way that carriers share service revenues with Apple, Jobs said, "We're not going to go into it, but if it's using the network you can conceptually imagine that it might make sense."

One of the final questions tossed Jobs' way asked what assurance UK customers have that Apple isn't going to turn around in two months and announce a dramatic iPhone price cut like it did in the US.

"I don't think that's going to happen," said Jobs, "but in technology there are no guarantees."

Jobs had no concrete answer and instead suggested that reporters "ask Starbucks" about the matter, implying that Apple may have sought a similar Wi-Fi sharing deal with the coffee house overseas but has yet to reach an agreement.

From what I heard, Steve said "Ask Starbucks, they love the UK". To me that said that it's something Starbucks are working on rather than it's something Apple couldn't reach an agreement about. Perhaps Steve felt like it was out of his hands and now it's down to Starbucks. It seemed clear at the last special event that Starbucks were very keen to be involved with Apple.

So your solution to the 3G power consumption problem is to have the user swap out their cellphone battery every 2 hours? Let's just say I'm glad it's Apple doing the product design.

Well it would certianly help the situation. Also let's not forget there are plenty of 3G phones that last a whole day using phone/music/net/email on one charge. My moto q being one. While I wish it would last longer than a day it's certianly a whole lot better than 2 hours. The iPhone is a power hog, it's power needs are greater than battery technology, edge is the compromise. 3g chips need to be designed better, batteries need to be designed better, and apple needs to design the phone better.

The Apple boss was seemingly more willing to discuss the company's stance on iPhone unlocks and third-party application development. "This is constant cat-and-mouse game," he said of the ongoing attempts to untether the handset from its intended carriers. "[P]eople are going to try and break in and it's our job to try and stop them."

Jobs also left the door open for a 3G version of the iPhone somewhere down the line, but maintained that current 3G chipsets are "power hogs." He said most of today's 3G devices have battery lives that span only 2 to 3 hours, compared to the iPhone's average 8 hours. "We've got to see the battery lives for 3G get back up into the 5+ hour range," he said. "Hopefully we'll see that late next year."

So, I guess Apple will attempt via iPhone firmware software updates to make any iPhone unlock antiquated and useless. Unless you keep purchasing the latest and greatest unlock software or whatever. That can become expensive and who wants to deal with that "cat and mouse" garbage!

My current cell phone is not 3G. I don't think there is 3G service anywhere in my hometown from any provider. It seems there is some agreement that 3G is a huge power consumer on the battery. Anyone out there with a variety of cell phones from different phone makers who can tell me what their experience with battery life with a 3G phone is? I mean, if 3G is the latest and greatest that everyone seems to demand, why is battery life so short. Who wants it? It's like the first electric car that only goes 80 miles on a full battery charge. Forget that!!! Or when the VCR wars were in full bloom, Beta vs VHS, where Beta provided better recording but less time to record on the blank tape versus the VHS blank tape. Will 3G come out with better power consumption sooner rather than later?

Who thinks reports of a 3G iPhone will be out in the first quarter or so of 2008 versus Steve Job's comments of "We've got to see the battery lives for 3G get back up into the 5+ hour range," he said. "Hopefully we'll see that late next year." How late??? late summer August/September or late fall October/November/December?

Anyone have an idea on that?

I would like a 16GB iPhone... anyone think Apple would introduced a iPhone Generation 2 with just an increase in capacity storage without 3G, MMS or a higher megapixel camera etc.? It looks like the current model is the latest and greatest for Europe as well and not in stock until November?! What is Germany and France November as well or early 2008?? I guess no new model iPhones any time soon!!! Anyone agree or disagree?